Learn How to Write a Business Feasibility Study

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We're living in the age of the entrepreneur, and you just might qualify as one. If you have a great idea for a new product (let's say a homemade cherry jam handed down by your grandmother) you may be thinking about bringing your idea, and product, to market. If that's the case, you'll likely benefit from a business feasibility study. Simply put, a feasibility study is a process during which you test an idea's viability.

In order words, you get a handle on whether or not your idea will work.

Feasibility studies also serve as a basis for creating a small business plan and marketing plan, something you'll need as a small (or solo) business owner. 

Before You Do a Feasibility Study

Before you jump into the deep end and commit time and energy to a feasibility study, do a quick pre-feasibility study in order to know if you even need to even do a feasibility study. Consider the following before taking on the task of a feasibility study:

  1. Assess the demand for your idea: If you want to sell cherry jam in your area, visit gorces and survey their shelves. If they have a paltry display, this could mean there is no demand for your product. If you plan to sell your product online, do a keyword search for your product. If it looks like a lot of people are doing a brisk business selling cherry jam (or a similar product) there's a good chance there is a demand for what you want to sell.
  1. Assess the competition: To know if there's a demand for your business idea or service, you also need to know who you are up against. Let's say you'd like to sell your jam at the local farmers market. Stop by the market twice, once on the busiest day, and once on the slowest day. See how many (if any) vendors are selling jam, and sample their product. You'll be able to judge fairly easily if your product is superior to the other product's you'll be competing with. If you plan to sell your jam online, see if there's a leading brand that dominates the market and already has a devoted customer base.
  1. Assess whether or not you need to hire an expert consultant: You may be a creative entrepreneur in the making but completing feasibility studies may be outside of your skill set, or perhaps you just don't have the available time. If that's the case, it might make sense to hire a consultant to manage and conduct your feasibility study. Before going down this road, ask colleagues for referrals and thoroughly research consultants with an expertise in your chosen product or service area and learn what their fees are. If you chose to hire a consultant, be clear with them that you want your report to be as objective and honest as possible

The Online Feasibility Study Course

If you've reached the point where you want to move forward with a business feasibility study, this is self-paced course with step-by-step instructions will show you how to research, write, and present a feasibility study.

Skill Level Required to Complete This Course

This is a beginning level course, assuming you have little or no knowledge of starting a business. It is also ideal if you have never created a feasibility study, marketing plan, or business plan before, or you're someone who needs detailed instructions.

Technology Requirements

To complete this course you will need:

  • Internet access to conduct research about your industry
  • Spreadsheet software to create financial information
  • Word processing software to type the final document

How to Prepare and Write a Small Business Feasibility Study Course Syllabus

  • What a Feasibility Study Is: Lesson 1 teaches you basic information about the nature and purpose of a feasibility study, how it differs from a marketing study, and why you should prepare a feasibility study before you prepare your business plan.
  • How to Write a Market Feasibility Study: Lesson 2 gives step-by-step instructions on how to prepare the market components of feasibility studies, including a description of the industry; current market; the anticipated future market potential (i.e., industry trends); competition; sales projections; potential customers and clients, and other revenue-generating resources.
  • How to Write a Technical Feasibility Study: Lesson 3 focuses on the technical and logistical aspects of how your business will produce, store, and deliver its products or services to the public. A technical feasibility study includes such details as the kinds of materials, labor, technology, and transportation you'll need as well as where your business will be located.
  • How to Write a Financial Feasibility Study: Lesson 4 instructs business entrepreneurs on how to prepare the financial component of feasibility studies. Included are such things an estimated start-up capital, identifying and listing sources of capital, and the estimated potential returns on investments.
  • Organizational Structure Feasibility Study: Lesson 5 covers the important details of your business' organizational structure. This part will help make your feasibility study and business plan more attractive to potential investors and clients. An organizational feasibility study defines the legal and corporate structure of the business and offers pertinent professional background information about the founders, partners, and other principals involved in the venture.
  • How to Write Feasibility Study Conclusions: This is an important part of the feasibility study writing process because you need to draw conclusions that you want your investors and potential customers to see. It is critical that your data and other information support your conclusions. At this point, everything needs to line up.
  • Presenting a Completed Feasibility Study: This last, but important, lesson offers guidelines on how to assemble your entire feasibility study together into a professional-looking package. Remember, content is key but the presentation is just as important because you must engage people or they won't pay attention to the details.